SpiceJet clears $1.5 million payment due to Credit Suisse after SC warning

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Indian airline SpiceJet on Friday said that it has cleared its $1.5 million dues to Credit Suisse. It comes days after the Supreme Court warned the airline’s chairman Ajay Singh to make the payment or go to Tihar jail.

“SpiceJet Ltd. has complied with the directive of the Supreme Court by remitting $1.5 million to Credit Suisse. The payment was executed on Thursday, September 14,” the company’s statement read.


On September 12, the apex court asked Singh to pay $500,000 towards an instalment to the Swiss firm along with a $1 million defaulted amount. “We have to move to the next drastic step. We are not worried even if you shut down,” a bench of Justices Vikram Nath and Ahsanuddin Amanullah said.


Irked over the “dilly-dally business”, the bench told Singh he would have to abide by the consent terms and warned, “We are not bothered even if you die. It is too much. We will send you to Tihar jail if you do not pay.”


According to the Swiss firm, SpiceJet had availed the services of SR Technics, Switzerland, for maintenance, repair, and overhaul of aircraft engines, modules, components, assemblies, and parts, which were mandatory for its operations. An agreement for such services was entered into between SpiceJet and SR Technics on November 24, 2011, for 10 years. The terms of payments were also agreed upon.

SR Technics had given Credit Suisse the right to receive payments from SpiceJet for the services.


The apex court had on July 25 given additional time to SpiceJet to make the payment to Credit Suisse as per the consent terms agreed upon by the two parties.


On Tuesday, the airline also announced that it has paid Rs 100 crore out of the total dues of Rs 350 crore to Kal Airways and its promoter Kalanithi Maran.


(With agency inputs)